On the job search is a key feature of real life labor markets. Yet, traditional equilibrium unemployment theory has not been able to account for on-thejob search in a satisfactory manner. In this paper we present an equilibrium model which includes on-thejob search as an optimal response to search frictions and differences in firm productivity. Our model is laid out in detail in ongoing researc...

this paper argues that a risk averse of workers after-tax reservation wage the difference between her reservation wage and the tax needed to fund the unemployment insurance system when liquidity constraint binds exists and it is unique. the optimality of unemployment insurance based on the responsiveness of reservation wage to unemployment benefit shows the disincentive effect, i.e. higher unem...

We explore the impact of successful job search after childbirth on mothers' labor market careers. Using a bounding approach and administrative data, we find strong heterogeneity in returns to leaving pre-birth employer. Moving new employer leads an increase re-employment earnings only for mothers at upper part distribution. For these mothers, initial also increases long-term earnings. provide e...